<span>If you increase the number of laborers that are found in the economy you will generally find that this also causes an increase in the curve of the production possibilities. This means that more laborers generally means more goods can be manufactured.</span>
Answer:
Part 1.
The negotiable range for the transfer price is between is $6 to $18 as the Netting division will incur loss if it sells its product below its variable cost whereas the maximum price it can transfer the product to Basketball equipment department is equal to the selling price that is $18.
Therefore, negotiable range is between for the transfer price is $6 to $18.
Part 2.
The minimum transfer price the Netting division should consider if at operating capacity is $18.
If they are at below capacity, the minimum transfer price would be $6.
Part 3.
The maximum transfer price the basketball equipment division should consider must be equal to the price outside vendors are charging for the same quality product that is $15.
Therefore, the maximum transfer price the Basketball Equipment Division should consider is $15.
Answer:
(a) 1.275%
; 6.25%
; 5.425%
(b) 12.95%
Explanation:
Given that,
After tax Cost of debt = 8.5%
Cost of preferred stock = 12.50%
Cost of Equity = 15.50%
Weight of debt = 15%
Weight of preferred stock = 50%
Weight of equity = 35%
After tax Weighted debt cost = Weight of debt × After tax Cost of debt
= 0.15 × 8.50%
= 1.275%
Weighted preferred stock cost = Weight of preferred stock × Cost of preferred stock
= 0.50 × 12.50%
= 6.25%
Weighted common equity stock cost = Weight of equity × Cost of Equity
= 0.35 × 15.50%
= 5.425%
Weight average cost of the firm:
= After tax Weighted debt cost + Weighted preferred stock cost + Weighted common equity stock cost
= 1.275% + 6.25% + 5.425%
= 12.95%
Note: The values of Debt, preferred stock and common equity are rearranged.
Answer:
This is the Epansionary Monetary Policy
Explanation:
True because how you going to know what to do without it